New Mexico Medical Cannabis Sales Exceed $50.6 Million In 2016

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NEW MEXICO: The Medical Cannabis Program’s total industry revenues from 2015 to 2016 increased by $19.7 million, resulting in $50,638,520 and a growth of 64 percent. Cannabis sales significantly surpassed other notable industries. Comparatively, the New Mexico chile crop was valued at $41.1 million in 2015 and the state’s craft beer industry is expected to generate $30 million in 2016.

The last reported New Mexico Department of Health (NMDOH) active patient enrollees was 32,840 as of October 2016, an increase of 76 percent from the prior year at 18,628. The growth in total dollar sales continues to lag behind patient enrollee count, validating an underserved demand attributable to the lack of adequate supply in the marketplace. Enrollee information for November and December 2016 has not been released by NMDOH.

The average price per gram in 2016 was $11.28 per gram and the median price was $10.94 per gram. Total grams sold in New Mexico for 2016 was estimated at 4,628,749 grams or 10,205 pounds of cannabis sold. The last reported demand estimates released by NMDOH in 2013 indicated “supply would need to be approximately 5,110,726.4 grams per year,” to meet the needs of  9,760 patients. Based upon NMDOH data, the most recent patient numbers of 32,840 patients would justify a need of over 17.2 million grams or 37,877 pounds annually.

The top five producers accounted for 43 percent of the total sales in New Mexico. On December 31, 2016 the total cannabis flower inventory on hand for the top five producers was 94,929 grams or 209 pounds. Based upon the top five producers’ 2016 sales experience, the inventory on hand represents a supply of less than 15.4 days or approximately a two week supply. Adequate supply is mandated by law “to ensure the uninterrupted availability of cannabis for a period of three months.”

Read full article @ PRNewswire.com

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